Problem: We are buying cars and break them in parts and sell the parts. The purchase price of car was 1000 GBP but the resulting stock of parts (listed in eBay) will have an value of 3000 GBP. How do I register the real stock of 3000 in quickfile and not only the 1000 car purchase? Obvious, this stock must appear as an asset of our company.
Thank you!
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You wouldn’t need to worry about the value of the stock until you need to enter a stock journal, which is often at year end for the purpose of your accounts. Until this time, you can simply log the purchase (the £1,000) to ‘General Purchases’, and log the sales to a sales nominal code.
We have a guide on opening and closing stock levels that you may find useful:
I hope that helps!
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I didn’t found the answer. If I use the opening stock+inventory entry-exit -closing stock journals, the closing stock will be calculated as taxable profit.
I need to reformulate my original question. If we buy a car valued 1000 and break it in parts, the parts will have an inventory value of 3000 (stock purchase value is 1000 but there appears 2000 value in plus after our work).
What I need is this stock to appear in balance as asset, but is an aberration to consider this inventory profit, and tax it before selling it.
How should I record this inventory of 3000 without 2000 being calculated as taxable profit?
Thank you!
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Stock is a balance sheet code. Taxable profit is calculated from your profit and loss.
However, with something like this, I recommend asking your accountant for advice to ensure it’s recorded correctly (I’m not one).